Newsletter-21

387 TAX LAW of the taxpayer. Taxpayers may request in writing to the relevant tax authorities for the correction of error. In accordance with TPCArt.120, the principle of the tax office in question shall be competent to decide the tax error. Obvious and absolute errors shall be corrected ex officio . In the case of a correction made against the benefit of a taxpayer, such taxpayer shall file a lawsuit with the tax courts. Upon exhaustion of these prescribed times as per TPC Art. 124, the taxpayers whose ap- plication for correction is denied may apply to the Ministry of Finance by way of complaint. Prescription Prescription, and in other words, statute of limitations, is the legal institution regulating the elimination of the right to demand a right by prescribing a time period. The statute of limitations in tax law means the time when the right of the tax office to demand a tax receivable is eliminated. The statute of limitations in tax law, are divided into appropriate sections of accrual, collection and prescription in penalty. TPC Art. 114 regulates the prescription times. Accordingly, taxes that have not been assessed and notified to the taxpayer within 5 years following the calendar year in which the tax receivable has arisen, shall be subject to prescription. In this instance, the reasons that cause the prescription to cease are listed in the TPC. For the tax receivables falling in the scope of the Law on the Procedure of the Collection of Public Receivables numbered 6183 that were finalized, however remain unpaid, and are in the collection phase, a “collection” prescription shall be applied. According to Law numbered 6183 Art. 102, the receivable is subject to prescription 5 years following the start of the calendar year upon which the receiv- able becomes due. The collection prescription ceases and commences given any of the circumstances that have arisen as listed under Article 103 of Law numbered 6183 (payments, seizure, collection, notifica- tion of payment orders, declaration of property, etc.). Prescriptions are also used for tax penalties. Tax evasion penal- ties are prescribed 5 years following the calendar year in which the tax receivable commenced, non-compliance penalties imposed in